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What is the relationship between gold and Dollar
What is the relationship between gold and Dollar
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Strong Dollar, Weak Gold: When the US dollar is strong, it means you can buy more with each dollar. So, people may not feel the need to buy gold because their money is already valuable.
Weak Dollar, Strong Gold: If the US dollar is weak, it means your money doesn’t buy as much. In this case, people might buy gold because it’s seen as a safe way to protect their money’s value.
So, the relationship is a bit like a seesaw: when one goes up, the other tends to go down, and vice versa. But remember, this is a general idea and there can be other factors at play too.